Narayan AmmachchiPuerto Rican fintech Evertec acquired Brazilian banking software developer Sinqia in a US$591 million deal, positioning itself to reap the rich dividends of rising digital payment systems across Latin America.
Sinqia is one of the fastest-growing developers in Brazil’s banking sector, with a customer base of over 1,000 banks and financial institutions. The company’s products and services include core banking, payment processing and digital banking solutions.
It was founded in 1996 as Senior Solution, rebranding to Sinqia in 2019. The fintech is headquartered in São Paulo, Brazil, and employs over 2,000 people.
Evertec’s CEO Mac Schuessler stated in a press release that his company would take Sinqia’s solutions to more countries in Latin America.
This is Evertec’s fourth acquisition within the Latin American fintech space. In 2018, the firm purchased Rede, a Brazilian payments processor, and Credicard, a credit card issuer. The following year, the company acquired PayClip, a Mexican payments processor, and in 2020, it purchased Brazilian startup Getnet.
Sinqia has an attractive financial model, with approximately 85% recurring revenue and a strong position across verticals that allows for upsell and cross-sell opportunities.
Evertec can now bring its expertise in payment solutions to Sinqia’s over 900 customers in Brazil. Additionally, Evertec sees an opportunity to export some of Sinqia’s products to its customers elsewhere in the region.
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